Puerto Vallarta, Mexico – The Mexican peso started the session with an appreciation of 0.24%, trading at around 20.5695 pesos per dollar, compared to Thursday’s close. The exchange rate touched a minimum of 20.5221 and a maximum of 20.6542 pesos per dollar.
The Mexican peso commenced trading on Friday with a slight appreciation against the U.S. dollar, driven by a weakening greenback and market anticipation of the upcoming report on the U.S. manufacturing sector.
The peso opened the session with a 0.24% appreciation, trading at approximately 20.5695 pesos per dollar. This represents a modest gain compared to the Bank of Mexico’s (Banxico) closing rate on Thursday. During early trading, the exchange rate fluctuated between a minimum of 20.5221 and a maximum of 20.6542 pesos per dollar.
Despite the peso’s early gains, a broader weekly analysis indicates that the Mexican currency is on track for a depreciation of 1.23%, marking the second consecutive week of losses.
The Intercontinental Exchange’s Dollar Index (DXY), which measures the dollar against a basket of six major currencies, recorded a 0.18% decline, settling at 109.05 points. This weakening of the dollar has provided some upward momentum for the peso.
“The exchange rate shows minimal shifts as the market remains in a wait-and-see mode for significant economic updates during the first trading sessions of the year,” said Gabriela Siller, Director of Economic and Financial Analysis at Banco Base.
Siller further noted that liquidity in the foreign exchange market has not yet fully recovered following the holiday period. This, she cautioned, leaves room for episodes of high exchange rate volatility, a trend that has been evident in recent trading sessions.
Analysts suggest that while short-term fluctuations are expected, the peso’s performance will largely hinge on external factors, particularly the performance of the U.S. economy and monetary policy decisions by the Federal Reserve. Any signals from the Fed regarding interest rate adjustments or inflation expectations could influence the peso-dollar exchange rate in the coming weeks.
Investors and market participants are closely monitoring key economic indicators, including U.S. manufacturing data, which is expected to provide further insights into economic recovery trajectories. Additionally, domestic factors such as Mexico’s inflation trends and Banxico’s monetary policy stance will play a crucial role in shaping the peso’s performance.
As trading continues, market experts emphasize the importance of maintaining a cautious approach, given the potential for continued volatility and global economic uncertainty.
Puerto Vallarta, Mexico - The Mexican peso started the session with an appreciation of 0.24%, trading at around 20.5695 pesos per dollar, compared to Thursday's close. The exchange rate touched a minimum of 20.5221 and a maximum of 20.6542 pesos per dollar.
